Rs 2.25 lakh crore gone! Adani stocks record worst day since Hindenburg crisis
Adani Group’s stock performance has faced significant turmoil, particularly following the Hindenburg Research report released in January 2023, which accused the conglomerate of stock manipulation and accounting fraud. This report has had a lasting impact, leading to substantial financial losses for the group.
Recent Stock Performance
Current Market Capitalization: As of now, Adani Enterprises is priced at ₹2,286.85, reflecting a drastic decline of approximately 18.95% from previous levels.
Overall Losses: Since the release of the Hindenburg report, Adani Group has reportedly lost over ₹2.25 lakh crore (approximately $27 billion) in market value as shares plummeted across its various companies.
Impact of Hindenburg Report
Initial Reaction: The initial fallout from the Hindenburg report saw Adani stocks nosedive, with shares of Adani Enterprises dropping from ₹3,389.85 to around ₹1,564.70 within a week following the report’s release.
Ongoing Volatility: The volatility continued with further declines noted in subsequent months, including a notable drop of 28.45% on February 1, 2023, marking one of the worst days for Adani stocks.
Investor Sentiment: The allegations have led to a crisis of confidence among investors, resulting in significant sell-offs across all ten listed companies within the Adani Group. This includes major players like Adani Ports and Adani Green Energy, which have also seen steep declines in their stock prices.
Regulatory Scrutiny: The situation has prompted investigations by the Securities and Exchange Board of India (SEBI), especially concerning allegations against its chairperson regarding conflicts of interest linked to offshore investments related to the Adani Group.
The ongoing fallout from the Hindenburg report continues to affect Adani Group’s stock performance severely. With market capitalization losses exceeding ₹2.25 lakh crore and significant declines in share prices across its portfolio, the conglomerate faces an uphill battle to regain investor trust and stabilize its financial standing amidst regulatory scrutiny and public skepticism.
